Correlation Between Bbh Intermediate and Midcap Growth
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Midcap Growth at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bbh Intermediate and Midcap Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Midcap Growth Fund, you can compare the effects of market volatilities on Bbh Intermediate and Midcap Growth and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bbh Intermediate with a short position of Midcap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Midcap Growth.
Diversification Opportunities for Bbh Intermediate and Midcap Growth
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bbh and Midcap is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Midcap Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midcap Growth and Bbh Intermediate is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bbh Intermediate Municipal are associated (or correlated) with Midcap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midcap Growth has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Midcap Growth go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Midcap Growth
Assuming the 90 days horizon Bbh Intermediate is expected to generate 7.02 times less return on investment than Midcap Growth. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 8.38 times less risky than Midcap Growth. It trades about 0.2 of its potential returns per unit of risk. Midcap Growth Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,008 in Midcap Growth Fund on May 31, 2025 and sell it today you would earn a total of 109.00 from holding Midcap Growth Fund or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Midcap Growth Fund
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Midcap Growth |
Bbh Intermediate and Midcap Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Midcap Growth
The main advantage of trading using opposite Bbh Intermediate and Midcap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Midcap Growth can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Midcap Growth will offset losses from the drop in Midcap Growth's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Intermediate Municipal |
| Midcap Growth vs. Bbh Intermediate Municipal | Midcap Growth vs. Old Westbury Municipal | Midcap Growth vs. Gamco Global Telecommunications | Midcap Growth vs. Ab Bond Inflation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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